Emerging lithium producer Galaxy Resources Ltd
(ASX:GXY) has successfully completed an institutional capital raising of $65 million.
The capital raising is part of the funding process for its Mt Cattlin mine in Ravensthorpe and Jiangsu Lithium Carbonate Project in China.
The company placed 51 million shares at a price of $1.28 a share.
Managing director Iggy Tan says the capital raising will complete the $160 million Creat equity and debt funding package for the development of all projects.
Mr Tan says the company is delighted with the response, saying it reflects a strong endorsement for the lithium market and the company’s strategies to fast track development of its Ravensthorpe mine and China production facilities.
The company says its intention is to use funds to reduce the project debt to a level of around 60 per cent as the project meets expected cash flows.
Looking back over the past five years, Galaxy Resources is yet to post a net profit.
